We present our ideas here at TheOptionsEdge.Com and in the spirit of full transparency, we track the performance of these ideas in the TOE Trade-Ideas portfolio. In 2016 and 2017 we wrote for Action Alerts Options over at TheStreet.Com. We identify this portfolio as the AAO Trade-Ideas. The following table summarizes the performance of all our ideas since we started publishing in 2016. We have broken up the analysis into three sub-components. (1) Trades that are still open, (2) Trades that were closed so far in 2017, and (3) those trades that were closed in 2016.
Computing returns for options trades in a manner that is comparable to a stock portfolio are somewhat challenging. Some people like to compare gains and losses to the price of the underlying security. By this method, the average annualized return enjoyed was 5.8%. It is worth noting that this method has far less risk as the underlying stock, as the options strategies we use generally have limited risk compared to a stock holding. An alternative method is to compare the gains and losses on the options trades to the Capital at Risk. This method is closer to the risk of holding stocks but it tends to be more volatile. By this measure, the tactical portfolio generated an annualized return of 22.1%.
Some of the trades we made are now approaching levels where it begins to make sense to take profits. We will have more on this as the weeks progresses and recommend exiting or rolling positions as appropriate. At the same time, we still have half a dozen ideas out of the 23 open suggestions that are giving us heartburn. We constantly review those positions to determine if the world has changed and conflicts with our thesis. Should this be that case, we will suggest we take our hit and move on to brighter pastures. If and when this occurs, we will write a post to discuss the situation.
You probably want to know more about the individual trades we made, particularly if you are evaluating our service for the first time. The following links will take you to tables that summarize the trades we discussed. Those tables will have the date of trade initiation, prices at which the trade was recommended and the closing prices. This leads us to the profit on a trade by trade basis. The performance of the closed trades is available for everyone to evaluate. The summary of open trades is strictly reserved for our subscribers.
- The Options Edge Open Trades
- The Options Edge Closed Trades in 2017
- Action Alerts Options (TheStreet.Com) Trades Closed in 2017
- Action Alerts Options (TheStreet.Com) Trades Closed in 2016
For more on how we calculate returns, click here.
